Furiex Pharmaceuticals, Inc. (NASDAQ: FURX) announced today it has restructured its Loan and Security Agreement (Agreement) with MidCap Financial LLC and Silicon Valley Bank to add $30.0 million in capital to the existing $10.0 million loan.
On August 18, 2011, Furiex entered into the Agreement for $10.0 million with a fixed interest rate of 10.25% per annum. Interest accrued monthly and was payable in arrears on the first day of the following month. The $10.0 million principal balance was due August 1, 2015, with principal payments beginning on August 1, 2012, payable on a ratable monthly basis on the first day of each month until maturity.
The amended Agreement provides for a loan totaling $40.0 million with a fixed interest rate at closing of 10.00% per annum, subject to adjustment in certain events. Interest will accrue daily and will be payable in arrears on the first day of the following month. The total principal balance is due August 1, 2016, with principal payments beginning on August 1, 2013, payable on a ratable monthly basis on the first day of each month until maturity. Furiex intends to use the additional capital to support Phase III clinical trial costs associated with the continued development of MuDelta.
"As we progress the Phase III development of MuDelta, this transaction provides us with additional financial flexibility to help us reach our development goals," said Marshall Woodworth, chief financial officer of Furiex. "We are pleased to have successfully closed on this source of capital and to continue our relationship with MidCap Financial LLC and Silicon Valley Bank."About Furiex Furiex Pharmaceuticals is a drug development collaboration company that uses innovative clinical development design to accelerate and increase value of drug development programs by advancing them through the drug discovery and development process in a cost-efficient manner. Our drug development programs are designed and driven by a core team with extensive drug development experience. The company collaborates with pharmaceutical and biotechnology companies and has a strong, diversified product portfolio and pipeline with multiple therapeutic candidates, including one Phase III-ready asset, two compounds in Phase III development, one of which is with a partner, and two products on the market. The company's mission is to develop innovative medicines faster and at a lower cost, thereby improving profitability and accelerating time to market while providing life-improving therapies for patients. For more information, visit www.furiex.com. About MidCap Financial MidCap Financial is a commercial finance company focused on middle market lending across the healthcare sector. MidCap specializes in $5 million to $200 million loans and since launching in 2008 has deployed over $1 billion in capital. The company is headquartered in Bethesda, MD, with offices in Chicago and Los Angeles. For more information, please visit www.midcapfinancial.com. About Silicon Valley Bank Silicon Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity and premium wine businesses. SVB provides industry knowledge and connections, financing, treasury management, corporate investment and international banking services to its clients worldwide through 27 U.S. offices and seven international operations. (NASDAQ: SIVB) www.svb.com. Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.